ZFUSD5Y T-Note Futures

Oil prices jump above $100 as gold and agricultural commodities retreat at European open

Oil supply concerns and geopolitical tensions dominate the landscape, contrasted by clear selling pressure on precious metals and grains. Energy prices saw a strong rally as the Gasoline Fund rose by 4.75% and the Brent Oil Fund by 2.28%, driven by a record decline in US gasoline inventories in the Midwest region. Concerns were exacerbated by Chinese refineries suspending fuel exports and PetroChina canceling October shipments, in addition to a decline in Iranian oil supplies which increased risks in the Strait of Hormuz. JPMorgan has stopped forecasting the trajectory of the crisis as prices crossed the $100 barrier, while Trump is considering a ban on US diesel exports to lower domestic costs. Gold prices retreated toward the $4,150 level under pressure from bond yields, while agricultural commodities saw a collective decline; the Corn Fund fell by 2.36%, the Wheat Fund by 1.92%, and Cotton Futures by 4.53%. Wheat prices on Euronext were affected by pressure from US corn inventories, and US corn contracts also fell by 3% amid selling pressure. In contrast, sugar bucked the trend with a rise of 1.94%, while the industrial metals sector faces strike risks at the Escondida copper mine following the rejection of BHP's contract offer.